Kennedy Wilson Multifamily Returns to its Southern California Roots in Joint Venture with PCCP, LLC
Partnership Acquires Townhome Rental Community in Montclair
MONTCLAIR, CA – August 15, 2008 – (RealEstateRama) — Seeing opportunity where others in the real estate industry only see challenges, Kennedy Wilson Multifamily Management Group (KW Multifamily), a Beverly Hills, CA-based apartment investor, and its partner PCCP, LLC (PCCP), an integrated real estate finance and investment management firm, have acquired a major multifamily asset on the western perimeter of the Inland Empire. Consisting of 165 spacious townhomes in the desirable, mature foothill community of Montclair, CA, Cambridge Park was purchased from Acacia Capital for $29.25 million. The buyers, who have assumed Acacia’s existing Fannie Mae/Prudential loan, plan to invest an additional $2.33 million to renovate the 8.24-acre project built in 1974.
“We closed two multifamily acquisitions with PCCP in 2003 and are extremely excited to rekindle our relationship with the purchase of Cambridge Park,” said Bob Hart, president and CEO of KW Multifamily. “Further sweetening the deal is the fact that this superbly located asset, which we’ve had our eye on since June 2007, represents the first addition to our Southern California portfolio in 18 months.”
Comprised of 22 two-story, townhouse-style structures and a leasing office, Cambridge Park, to be renamed The Lexington, offers a mix of two and three-bedroom townhomes, 62 percent of which include attached two-car garages. Averaging 1,100 square feet, all units feature mansard roofs, and are equipped with central heating and air-conditioning, oversized patios or balconies, full-size washers and dryers, double steel sinks, electric ranges, dishwashers, ceiling fans and large closets. Residents also enjoy a variety of shared amenities, including a fitness center, swimming pool, children’s playground and outdoor barbeques. In addition, ample parking is provided by 337 parking spaces (two spaces per unit).
“Although the Inland Empire has been hard-hit by the housing slowdown, Montclair has the second highest average rent of any city in the region and is well-positioned to capitalize on the long-term growth projected there,” noted Rob Cohen, vice president of PCCP, LLC. “Along with our partner KW Multifamily, we’re believers in the long-term economic growth of the Western Inland Empire and are delighted to be able to acquire such a unique asset with such compelling in-place cash flow.”
Cambridge Park is located across from Montclair Plaza, which is anchored by Nordstrom and Macy’s and currently undergoing a major renovation. It is also within walking distance of the Montclair Transcenter (future location of the Metro Gold Line extension), one mile from the Claremont Colleges and close to diverse employment centers. According to Hart, Cambridge Park has the potential to command rents 15 – 20 percent higher than those currently in place. Offering a significant opportunity to renovate unit interiors, modernize the exterior look of the property and enhance the amenity package, Cambridge Park fits with KW Multifamily’s proven strategy of acquiring well-positioned but underperforming assets in supply-constrained rental markets.
KW Multifamily is a subsidiary of Kennedy Wilson, a Beverly Hills-based real estate services and investment firm. Founded in 1977, Kennedy Wilson has 20 offices throughout the U.S. and Japan. It seeks value-added opportunities in partnership with clients in pursuit of above-market investor returns and higher real estate values. KW Multifamily is actively involved in the acquisition, repositioning, management, leasing and disposition of assets in the Western U.S. KW Multifamily has purchased approximately 13,000 apartments in California, Oregon and Washington. For further information, visit www.kennedywilson.com.
PCCP, LLC is an integrated real estate finance and investment management firm with more than $4 billion in assets under management. PCCP’s unique strategy is to provide both balance-sheet debt and equity to value-added and opportunistic middle-market real estate projects throughout the United States, with a focus on the western U.S. PCCP has invested more than $5.3 billion in properties and continues to seek value-added investment opportunities with proven operators seeking fast and reliable capital. Visit PCCP online at www.pccpllc.com
